Abstract
Evaluation is a key element in preparation of the business case for an IT project. Business plans include discussion of costs and benefits, performance measures, progress milestones, assessment of risk, cost estimates for alternatives, and general justification for the advocated alternative. Approaches to evaluation range from the qualitative and general to the quantitative and specific. As identified in the chapter, evaluation activities may include comparisons of the agency with “best practices,” development of performance measures and benchmarks, and cost-performance analysis.
TopGiven the many issues which arise in measuring the diffuse costs and benefits of public information technology initiatives, it is hardly surprising that in the public sector there has been less support than in the private sector for undertaking this task at all. Forrer and Anderson (2001) used survey data from both sectors to show that whereas almost 90% of private managers said Return on Investment (ROI) projections had a moderate or high impact on IT-related organizational decisions, 40% of public managers perceived little or no impact. Some 61% of private managers felt that measuring return on investment was a good way to analyze IT investments. The corresponding figure for public managers was a mere 10%, presumably in no small part because ROI methodology is associated with traditional financial models which normally ignore intangible, subjective, potential, and controlled costs and benefits, all of which are important in the public sector.